DOW JONES NEWSWIRES
Industry Minister Tony Clement said in a statement Wednesday that L.M. Ericsson Telephone Co.'s (ERIC) proposed acquisition of certain of Nortel Networks Corp.'s (NRTLQ) assets won't be subject to review under the Investment Canada Act.
As reported, Nortel has agreed to sell its wireless networks business to Ericsson for $1.13 billion. Ericsson will also license Nortel's Long-Term Evolution, or LTE, patents on a non-exclusive basis. The property rights to the patents for these technologies remain with Nortel.
Clement said the book value of the assets being sold fall "far below" the current threshold for review of C$312 million. He added that based on all the information presented to him, "there are no grounds to believe that this transaction could be injurious to Canada's national security."
Ericsson's offer includes the retention of about 800 workers; according to the company, an "overwhleming majority" of employees have accepted the offer.
-By Tara Zachariah, Dow Jones Newswires; 416-306-2100; tara.zachariah@dowjones.com